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Trinseo (TSE) Declares Quarterly Dividend Raise of 300%
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Trinseo S.A. (TSE - Free Report) recently announced that its board has authorized a dividend of 32 cents per share, an increase of four times from the last dividend of 8 cents. In December 2020, Trinseo had announced a dividend reduction to facilitate rapid near-term deleveraging following the acquisition of the PMMA business.
Considering the company’s earlier-announced expectation of a net leverage ratio in the low-2x range by the end of this year, the board approved the dividend increase. The dividend will be a cash distribution payable on Oct 7, 2021, to shareholders of record as of the close of business on Oct 1.
The company noted that the dividend increase reflects on the high confidence it has in its future business performance and cash generation. It sees returning cash to shareholders as an important part of its capital allocation, as it continues its transition to a specialty materials and sustainable solutions provider.
Trinseo ended the last reported quarter with cash and cash equivalents of $367 million, down around 37% year over year. Long-term debt was $2,310 million, up around 83% year over year. Cash used in operating activities was $21 million in the reported quarter.
Shares of Trinseo have surged 116% in the past year compared with a 49.4% rise of the industry.
Image Source: Zacks Investment Research
Trinseo, in its last earnings call, stated that for 2021 it sees net income from continuing operations in the range of $344-$380 million. Adjusted EBITDA is forecast in the band of $750-$800 million.
The company also expects cash from operations of $425-$475 million and free cash flow of $275-$325 million for full-year 2021.
Trinseo envisions strong earnings performance from continued commercial excellence actions and high demand for most of its products in the second half of the year. However, it expects earnings to decline from the first half of 2021, primarily due to no expected contribution from the Feedstocks segment.
Trinseo currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , The Chemours Company (CC - Free Report) and Olin Corporation (OLN - Free Report) .
Nucor has a projected earnings growth rate of around 534.4% for the current year. The company’s shares have surged 132.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of around 86.4% for the current year. The company’s shares have gained 47.2% in the past year. It currently flaunts a Zacks Rank #2 (Buy).
Olin has an expected earnings growth rate of around 639.3% for the current fiscal. The company’s shares have surged 315.6% in the past year. It currently carries a Zacks Rank #2.
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Trinseo (TSE) Declares Quarterly Dividend Raise of 300%
Trinseo S.A. (TSE - Free Report) recently announced that its board has authorized a dividend of 32 cents per share, an increase of four times from the last dividend of 8 cents. In December 2020, Trinseo had announced a dividend reduction to facilitate rapid near-term deleveraging following the acquisition of the PMMA business.
Considering the company’s earlier-announced expectation of a net leverage ratio in the low-2x range by the end of this year, the board approved the dividend increase. The dividend will be a cash distribution payable on Oct 7, 2021, to shareholders of record as of the close of business on Oct 1.
The company noted that the dividend increase reflects on the high confidence it has in its future business performance and cash generation. It sees returning cash to shareholders as an important part of its capital allocation, as it continues its transition to a specialty materials and sustainable solutions provider.
Trinseo ended the last reported quarter with cash and cash equivalents of $367 million, down around 37% year over year. Long-term debt was $2,310 million, up around 83% year over year. Cash used in operating activities was $21 million in the reported quarter.
Shares of Trinseo have surged 116% in the past year compared with a 49.4% rise of the industry.
Trinseo, in its last earnings call, stated that for 2021 it sees net income from continuing operations in the range of $344-$380 million. Adjusted EBITDA is forecast in the band of $750-$800 million.
The company also expects cash from operations of $425-$475 million and free cash flow of $275-$325 million for full-year 2021.
Trinseo envisions strong earnings performance from continued commercial excellence actions and high demand for most of its products in the second half of the year. However, it expects earnings to decline from the first half of 2021, primarily due to no expected contribution from the Feedstocks segment.
Trinseo S.A. Price and Consensus
Trinseo S.A. price-consensus-chart | Trinseo S.A. Quote
Zacks Rank & Key Picks
Trinseo currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , The Chemours Company (CC - Free Report) and Olin Corporation (OLN - Free Report) .
Nucor has a projected earnings growth rate of around 534.4% for the current year. The company’s shares have surged 132.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of around 86.4% for the current year. The company’s shares have gained 47.2% in the past year. It currently flaunts a Zacks Rank #2 (Buy).
Olin has an expected earnings growth rate of around 639.3% for the current fiscal. The company’s shares have surged 315.6% in the past year. It currently carries a Zacks Rank #2.